Finance a Business in Vietnam

Financing a business continues to be one of the most significant concerns and challenges for both new and established enterprises, particularly when operating in a foreign country. In Vietnam, various efficient methods can assist you in raising capital for your business.

The first avenue to consider is the joint stock market. This method offers a stable and substantial source of capital, essential for developing long-term business strategies. To sell new shares to shareholders and the public, you must register these shares with the State Securities Commission of Vietnam (SSC) to obtain approval. Once registered, you can commence business operations using the authorized shares.
Photo: winerp.vn

Initially, it is recommended that you sell shares primarily to current shareholders to gather sufficient new capital for your strategic plans. If you require additional funding or current shareholders choose not to invest further, you can then offer the shares to the public by listing them on the stock exchanges, which include the Ho Chi Minh City Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX), as well as the Over-The-Counter (OTC) Market.

Another option for financing your business is obtaining a loan. If your capital requirements are modest, consider borrowing from friends, relatives, or business partners. However, if your financial needs are more significant and you lack local connections, you may need to approach banks or financial organizations. As of 2025, interest rates in Vietnam vary, generally hovering around 9% – 12% per year for VND and approximately 5% – 7% per year for USD. Additionally, some banks may impose extra fees, potentially increasing your effective interest rate by an additional 2% – 4% annually.

It is essential to borrow from reputable banks or financial institutions and to avoid seeking loans from strangers, as they may charge exorbitantly high-interest rates and use aggressive collection methods. For further insights into Vietnam's financial market, refer to our Banking Overview article.

Further reading: How to open a bank account in Vietnam